Difference between first best in contract theory

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Reference no: EM13769570

What is the definition of "First Best", "Second Best", etc. in contract theory?

Especially, what is the difference between "First Best" in contract theory and "ex-post efficient" in mechanism design?

Reference no: EM13769570

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Difference between first best in contract theory : What is the definition of "First Best", "Second Best", etc. in contract theory? Especially, what is the difference between "First Best" in contract theory and "ex-post efficient" in mechanism design?

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